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State of Land & New Home Starts in Utah
https://youtu.be/6rEi3YMQ6Tw
Biggest Takeaways:
If you missed the Facebook live event Tuesday, here is the conversation with Matt Green & Zach Hartman. Zach is the #1 land broker in the state and had great insight into the market and new homes sales here in Utah.
We currently have more starts than closings along the Wasatch front and the time to deliver a new home has risen to over 6 months compared to other parts of the state and is putting upward pressure on home affordability. This is partly due to a wet spring that delayed construction and a tight labor market. Another new trend that we are seeing is that the top long-term builders in the area have scaled back somewhat to better weather a downturn better. That being said there are several new large builders that have entered our market recently to fulfill the gap.
Zach does not feel that our market is overheating and heading toward a bubble. At the height of the market before the great recession we were above 16,000 permits and we are set to finish off the year at around 10,000 along the Wasatch front. In years prior were absorbing 14,000 to 15,000 per year and we now have a higher population ready to buy with money in their pockets and continued low interest rates than we did then. Zach went on to explain that we currently do not have the qualified labor, cooperative municipals and the capital willingness to build 16,000 homes currently. Last year Utah County pulled more permits for the first time than Salt Lake County due to affordability, a strong job market and municipals are easier to work with.
With the addition of the Mountain View Corridor and Pioneer Crossing it has changed the flow of traffic and has opened up allot of new land to build on for future development and Zach believes that the majority of the new growth will be in the areas of northern Utah County and the southwest part of Salt Lake County.
When you look at the Utah Envision map we are basically out of land within next 10 years along this corridor. Some builders are down to a 12 to 18-month supply in some areas before completely selling out and this will impact the affordability of new and existing homes.
In a future broadcast, Zach has agreed to come back and do a deep dive into the details of the prison relocation in Salt Lake and the associated developments.
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https://youtu.be/6rEi3YMQ6Tw
Biggest Takeaways:
If you missed the Facebook live event Tuesday, here is the conversation with Matt Green & Zach Hartman. Zach is the #1 land broker in the state and had great insight into the market and new homes sales here in Utah.
We currently have more starts than closings along the Wasatch front and the time to deliver a new home has risen to over 6 months compared to other parts of the state and is putting upward pressure on home affordability. This is partly due to a wet spring that delayed construction and a tight labor market. Another new trend that we are seeing is that the top long-term builders in the area have scaled back somewhat to better weather a downturn better. That being said there are several new large builders that have entered our market recently to fulfill the gap.
Zach does not feel that our market is overheating and heading toward a bubble. At the height of the market before the great recession we were above 16,000 permits and we are set to finish off the year at around 10,000 along the Wasatch front. In years prior were absorbing 14,000 to 15,000 per year and we now have a higher population ready to buy with money in their pockets and continued low interest rates than we did then. Zach went on to explain that we currently do not have the qualified labor, cooperative municipals and the capital willingness to build 16,000 homes currently. Last year Utah County pulled more permits for the first time than Salt Lake County due to affordability, a strong job market and municipals are easier to work with.
With the addition of the Mountain View Corridor and Pioneer Crossing it has changed the flow of traffic and has opened up allot of new land to build on for future development and Zach believes that the majority of the new growth will be in the areas of northern Utah County and the southwest part of Salt Lake County.
When you look at the Utah Envision map we are basically out of land within next 10 years along this corridor. Some builders are down to a 12 to 18-month supply in some areas before completely selling out and this will impact the affordability of new and existing homes.
In a future broadcast, Zach has agreed to come back and do a deep dive into the details of the prison relocation in Salt Lake and the associated developments.